Exxon Mobil Corp. plans to build a multi-billion dollar chemical plant in Texas. Anticipated to be online as early as 2016, the plant would increase Exxon Mobil’s chemical production capacity.
North America’s largest natural gas producer since the purchase of XTO Energy Inc. in 2010, Exxon Mobil’s decision to build the new plant will help the company compete more effectively with largest U.S. chemical producer Dow Chemical Co. The announcement by Exxon Mobil followed recently announced plans from LyondellBasell, Royal Dutch Shell Plc and Dow among others, who intend to expand their own chemical production in the United States.
The shale gas boom gives a large cost advantage to American producers over European and Asian producers. Though the company had stated that it did not have any plans to expand chemical production in the U.S., the low natural gas prices have ignited interest.
The Exxon Mobil plant is expected to produce 1.5million tons of ethylene per year and will be built at their Baytown complex. The company is also planning two new 650,000 tons per year capacity polyethylene production facilities at its Mont Belvieu complex.
Construction on the plant is expected to begin by March 2013 according to the filing with the U.S. Environmental Protection Agency and Texas officials last month. Regulatory approval is expected with the year.